Democrats angry at Obama for apparent ‘caving’ on tax issue

Some Democrats are fuming after President Obama signaled that he will accept extension of the Bush-era tax cuts for everyone, regardless of income.

President Obama and Speaker Nancy Pelosi may not be all hugs and kisses over the tax issue. (Chip Somodevilla, Getty Images)

“Sorry folks, there’s nothing ambiguous about this: agreeing to the Republican tax cut plan without putting up a fight would pretty much be the textbook definition of caving,” Jed Lewinson writes in the Daily Kos, a leading Democratic blog.

If no bill is passed during the lame-duck session of Congress, the income tax cuts will expire on January 1. Obama had proposed ending them for individuals earning more than $200,000 (for couples, $250,000). Republicans have said they will veto any tax bill that doesn’t cover everyone.

Top Obama adviser David Axelrod told the Huffington Post late Wednesday that the administration would accept a across-the-board, temporary continuation of the cuts, including those for the wealthiest taxpayers, rather than risk losing the cuts for people with lower incomes. “We have to deal with the world as we find it.”

The winning blueprint of the White House these two years is to pick smart fights where the American people are overwhelmingly on their side and force Republicans to fight hard. The tax-cut fight would be a perfect place to start. There is zero tolerance among progressives for Democrats caving on an issue where 98 percent of the American people would be on their side.

House House Majority Leader Steny Hoyer, D-Md., also opposes a deal, with his spokeswoman noting it would blow a $700 billion hole in the budget over the next 10 years. Still to be seen: Will outgoing Speaker Nancy Pelosi reluctantly try to sell her members on the extension, seek another deal or simply refuse to play ball.